The search for and purchase of a forever home could become one of the most stressful decision-making moments in your life. You could be already looking at your short-term accommodation needs, such as the transients or apartments, but you will eventually transition to deciding on what home you would like to stay in for the long or long term kingdom valley Islamabad location. There are two types that you can choose from: condominium units or a House and lot. These options are complemented by the financial and time constraints necessary. To help you narrow decisions take these benchmarks with you.
Condominium
If you would prefer to be a part of the hustle and bustle of urban life, maybe the condominium is the right choice for you. Although there are many good advantages that condos offer such as amenities and the opportunity to lease it or let, there are in general, non-numeric negatives that might pop up in the future. A majority of developers offer units during the planning phase of the condominium, which means the unit will be more likely to be affordable due to the place of residence. While it may be appealing to the ear but don't make a decision just now.
Benefits
Based on the Global Property Guide, with the Philippine mortgage market relatively underdeveloped, "most of the houses are sold for cash or pre-sold". In the condo market there is a choice of ready-for-occupation (RFO) units as well as pre-sold units.
Many buyers go for the option of pre-selling because of its lower initial cost which can be up to 30% less expensive than a completed product. In addition developers can offer 10%-15% discount or offer flexible payment options where the down payment could be as small as 10% and owed for 3 years with the lump sum made payable through a bank loan, a government-sponsored home loan (Pag-IBIG), or the developer's in-house financing option.
If you're a real estate investor selling condos before they are sold is an investment that is worth it since their market value can increase when they are completed. In the event of favorable market conditions and a favorable market, you could sell the completed units at a price that is twice the amount you invested when they were in the pre-selling stage.
Risks
A pre-sales condo unit is filled with terms such as "more or less" and "subject to change without prior notice". If you don't keep track of the progress of construction every now and then the conditions you have agreed to may not be in place when the building is already standing. The primary risk with a pre-selling condominium is that the completed unit could not match what you had in mind. The materials can be changed. Also, there could be modifications that are made to unit sizes, floor plan, finishing and features or amenities that you might not be informed. You can end up paying an amount that is short of your expectations, thus removing your "promising investment" claim.
Another issue is delays in the completion process and turnover, if the developer isn't able to complete the project on time. Pre-sales contracts include delay clauses that allow the developer to be late for up to one year or more. The most painful issue, however one of the risks is that you could not get a refund for your deposit in case the pre-selling project is not successful or the developer fails to pay.
OFWs who intend to purchase pre-selling condos from abroad run the greatest risk. Many have lost their deposit and payment due to corrupt agents or representatives that profit from their absence and utilize the complicated forms to obtain "fees" from them.
House and Lot
If traveling or commuting to work is not a problem your way, perhaps purchasing a property and house situated a short distance from the city is the most ideal option for you.
A house and a lot could be an investment that is worthwhile since it would be your future and leave a legacy. The design, the amenities and overall look of your home is entirely up to you. It is all you need is a reputable realtor or company to help you navigate the legalities, and then meet with you to negotiate a "win-win" or good deal.
Benefits
A reputable real estate firm can simplify the process of purchasing land on your own and choosing the right design. The company designs house plans that is intended to match the block, with the right sun orientation and driveway placement.
The majority of buyers of homes have a land agreement with a land developer and a building contract with an architect. There are two ways a home builder can ease this process for you. The builder can wait until you settle on your land, after which they can conduct soil testing and feature survey, so they determine costs for the site before drafting the contract. The builder could also fix the site costs to produce the building contract around the same time the land lease is signed. This method is not always appropriate for all new homes being built, however it's more effective since the lender can obtain finance for the land and house at the same time.
You can save thousands and thousands of pesos. Creditors or financial institutions that are reputable should be able to let you skip some of the charges for both of the mentioned situations. There is no need to be responsible for stamp duties on the property's worth as the home is still to be constructed, and you can also claim various depreciable assets including the cost of construction, the fixtures and the construction itself.
Risks
One risk you could be facing is paying to take someone else's profits. When you buy any brand new property, included in the cost is the profit margin of the developer and a proportion of the high costs of marketing that accompany selling this type of property. These hidden 'costs' could represent the equivalent of two years ' worth of investment growth which puts you in the eight ball from the beginning.
Another issue is the location. The majority of houses and land packages are located in the outer reaches of cities which are often in areas with an abundant supply of land with weaker economic drivers as well as a lack of infrastructure. Capital growth , therefore, is typically more difficult to attain. It is possible that you're facing uncertain waters. When you purchase off-plan it is difficult to know how well the finishings will be up to your expectations, or what the surrounding facilities and other residences will look similar to. Also, there is the possibility that the final bank valuation will not match up.
The logic dictates that when you invest you should look for the property that has a large percentage of land value because this is what will increase capital growth. In the case of new properties however, the bulk of the value lies in the construction component and not the land that can limit investment growth as the structure depreciates. A 30-year-old house in a good-sized block situated in an urban area might not appear as appealing when compared with a brand-new house but it's a more money in the long term.
When building an investment house, you will not earn any money while it's in process of planning or in construction. However, you'll be charged interest on any money that you have borrowed by that date.
Construction can be stressful, with construction delays a regular occurrence. The most surprising thing for new builders is the amount of cash that must be spent to get the house ready.
Additionally, smart investors recognize that adding value to a property by making improvements is an essential strategy for accelerating the wealth-creation process. However, this option may rarely be available with new properties.
Considerations
Packages of land and houses may have attractive additions, however many new estates feature smaller lot sizes. Based of your spending budget, have the option of selecting other available lots by the developer. You must ensure that the parcel of land will meet your requirements in the years to come, particularly if you plan on starting the family.
New estates are often constructed in the areas outside the city's proximity, and where employment possibilities and public transportation may be in short supply. The property may be advertised as a commutable distance from the city. However, in reality, it may be minutes, or even hours of driving (or more if you are in traffic). Do you have the courage to endure the long commute to work every day?
Selling to make money could be difficult in the short-term when your home and land combination is part of new estate. Home values outside or far from the city typically rise at a slower pace due to weaker economic drivers and lack of infrastructure. The developer continues to offer new homes in the area for sale at competitive costs, capital growth becomes becoming more difficult to attain.
After weighing up the advantages and disadvantages when you decide that the land and house package is right for you the next thing to do is to compare the house plans. Also, take your time when seeking out and choosing an experienced development company or builder.
